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Sour crude grades produced by UAE's Abu Dhabi National Oil Company will likely trade at a premium in the spot market this month, despite a hike in the official selling prices announced last week, traders said Monday. "Abu Dhabi grades seem [to be trading at a] premium this month again," a market source said.

ADNOC produces three major light to medium sour crudes -- Murban, Das Blend and Upper Zakum. A select proportion of its total monthly production trades in the spot market at differentials to the grades' OSPs.

Last week, ADNOC released its latest OSPs for term lifters and equity holders. The state-owned entity raised OSPs across all three grades by between 54 cents/b and 59 cents/b. Despite the price rise, traders and end-users expect to pay premiums for ADNOC crudes this month amid high demand from Asian consumers. Trading expectations for Murban and Das Blend are for 20-30 cents/b, while for medium sour Upper Zakum crude, the premium could rise up to 25-30 cents/b, sources said.

Crude oil in the Middle East spot market trades on a two months forward basis, with procurement of December barrels underway in October. In Asia, heating demand for the winter has consolidated with the disappearance of Iranian crude, causing a rise in prices for both light and medium sour crude grades.

The bullish sentiment is apparent in the December Dubai cash to swap spread, which has been hovering around US$1.50-US$1.65/b so far this month, compared to an average of US$1.41/b last month, S&P Global Platts data showed.

Additionally, traders had largely accounted for the recent price hike by ADNOC, in line with traded values of its crude grades in the spot market in the previous month, they said. "It all traded up in the cycle [last month], 45-50 cents/b," a Singapore-based crude trader said.

Nearly all sour crude traders, refiners, sellers and buyers surveyed by Platts said the OSP hikes were within their estimated expectations this month. "It meets our expectations," a Southeast Asian refiner said.

Spot market trading for December-loading cargoes is set to begin later this week, once the OSPs are released by other GCC producers.